Synthetix and Derve mutually canceled the merger agreement of $ 27 million
Synthetix and Derve canceled the 27 million dollar merger bid, aiming to unite the derivative protocols on Ethereum. According to the proposal, Synthetix would buy Derve by pressing 29.3 million new SNX Token. However, due to criticisms from communities and Derve's recent strong income performance, the parties mutually withdrew the proposal.
27 million dollar web3 agreement dispersed with community pressure
Synthetix and Derve (formerly Lyra), a two -decentralized derivative protocol working in the Ethereum network, announced on May 26th that the merger proposal worth $ 27 million was canceled by mutual agreement.
Within the scope of this merger:
Synthetix would buy Derve’s treasury assets, technology and products.
The purchase process would take place in the form of 1 SNX token swap in exchange for 27 DRV token.
29.3 million new SNX Token was planned to be printed for this process.
Both sides announced the process as a proposal for improvement on their platforms:
- SIP-415 (synthetix Improvement proposal)
- DIP (DERVE IMPROVEMENT PROPOSAL)
However, both of these proposals were officially withdrawn after community feedback.
What did the community say? Derve income passed synthetix
Many participants in the Derive community argued that the proposal did not reflect the real value of Derve. Especially:
In recent weeks, Derve’s income has passed Synthetix.
Nevertheless, the valuation of $ 27 million means that Derve is “clearly valued”.
In addition, 29.3 million new SNX Token printing, SNX investors were at the risk of diluting value.
Synthetix in search of alternatives, Derve continues independent road
With this merger, Synthetix aimed to benefit from the technical knowledge of Derve for the derivative product Perps V4. This product was designed with the central Limit Order Book architecture working on Ethereum.
However, with the cancellation of the agreement, Synthetix announced that it would look for other ways of technical partnership. Derve, on the other hand, said that this development reinforces the vision of independent progress and that the platform will continue to develop on its own route.
